The agency announced Friday that this move aims to cut rates of addiction in the U.S., especially among younger people.

"The overwhelming amount of death and disease attributable to tobacco is caused by addiction to cigarettes -- the only legal consumer product that, when used as intended, will kill half of all long-term users," FDA Commissioner Scott Gottlieb said in a statement.

Tobacco is responsible for 480,000 deaths and nearly $300 billion dollars in medical costs each year, according to the FDA.

After the plan was announced, shares of tobacco companies in the U.S. and U.K. plummeted in the stock market just moments after the FDA announced its plan.

The FDA said it will look into flavored tobacco, such as menthol, before recommending a concrete policy.